The European Investment Bank (EIB) is providing a loan of EUR 10.3 million to the Municipality of Chisinau, Moldova’s capital, to upgrade the city’s urban infrastructure.

The EIB loan will finance the reconstruction of six major streets with a total length of 14 kilometres and the modernisation of public lighting, traffic signals and utilities in the centre of Chisinau. The project involves the renewal of asphalt and pavements, building of new central pedestrian areas and establishment of on-street parking facilities as well as an upgrade of water drainage infrastructure.

EIB Vice-President Wilhelm Molterer commented: ”The loan signed today is the second EIB loan to the Municipality of Chisinau following the successful completion of the Chisinau trolleybuses modernisation project. We are delighted to continue the excellent relationship between the EIB and Chisinau by supporting the reconstruction of major streets in the city centre improving transport fluidity and safety.”

The project is being co-financed by the European Bank for Reconstruction and Development (EBRD), technical assistance funds and the Municipality of Chisinau.

This is the tenth EIB loan in Moldova, bringing the EIB’s lending commitment in the country to EUR 282 million. To date, the EIB has supplied funds for the development of Moldova’s transport, energy and municipal infrastructure. It has also provided credit lines to partner financial institutions in Moldova for supporting smaller projects usually implemented by small and medium-sized companies in various sectors, including the wine sector focusing on the increase of wine quality.

Background:

The EIB – the European Union’s bank – finances projects in Moldova on the basis of an EU Council and European Parliament mandate for the Eastern Partnership Countries (Ukraine, Moldova, Georgia, Armenia, Azerbaijan) and Russia of EUR 3.8 billion for the period 2007-2013. The current mandate provides for the financing of projects that contribute to (1) local private sector development, in particular support for SMEs, (2) development of social and economic infrastructure, and (3) climate change mitigation and adaptation.

The EIB has also set up at its own risk the Eastern Partners Facility (EPF) for an amount of EUR 1.5 billion, with a ceiling of EUR 500 million for loans in Russia. This facility enables the EIB to provide loans to support investment grade projects that sectorwise go beyond the scope of the mandate and helps support EU investment in the region, notably by European corporates.